Walmart is about 2.4 times Costco’s size: $713.2B of revenue in fiscal 2026 (to 31 Jan 2026) against Costco’s $303.2B (to 30 Aug 2026). Their operating margins are close (4.2% vs 3.9%), but they get there differently: Costco runs 939 warehouses that each sell about $323M and earns half its operating income from membership fees; Walmart runs 10,955 stores.
Sources: Walmart Form 10-K for fiscal 2026 and Costco Form 10-K for fiscal 2026. Analysis by The Business Engineer.
How we source: figures on this page come from the company’s own filings (SEC 10-K, 10-Q and earnings releases, or its annual report), with the period stated next to each number. Last refreshed October 2026. Our methodology.
Costco vs Walmart: the key numbers
| Metric | Walmart FY26 | Costco FY26 |
|---|---|---|
| Revenue | $713.2B | $303.2B |
| Operating income | $29.8B | $11.7B |
| Operating margin* | 4.2% | 3.9% |
| Net income | $21.9B | $9.2B |
| Membership income | $6.8Bโ | $5.9B |
| Stores | 10,955 | 939 |
| Employees | 2.1M | 355K |
Source: Walmart 10-K FY26 (to 31 Jan 2026); Costco 10-K FY26 (to 30 Aug 2026). *Calculated. โ Walmart reports membership and other income together.
What drives the difference
Two ways to sell cheap. Walmart earns its margin on merchandise across a dense store network; Costco marks up goods very little and charges 84.1 million paid members a fee, which brought in $5.9B (10-K).
Fewer, bigger boxes. A Costco warehouse sells about $323M a year against about $65M per Walmart unit (calculated), with 378 employees per warehouse versus about 192 associates per Walmart unit.
Walmart is moving toward the membership model: membership fee income grew 17% in Q2 fiscal 2027 (Q2 fiscal 2027 release).
What to watch
- Growth gap: Costco’s revenue grew 10.1% in its fiscal 2026, Walmart’s 4.7%.
- Renewals: Costco’s U.S./Canada renewal rate is 92.3%.
- Sam’s Club: Walmart’s own warehouse club sold $93.0B in fiscal 2026.
Keep exploring
Earlier analysis and background
Earlier analysis and background (pre-2026 figures)
The text below is the earlier version of this page. Its figures refer to earlier periods and some were corrected above; the current, sourced figures are in the sections above.
One card per Business Model Element: Costco, Walmart, Similarities, Differences, Competitive Advantage.
Customer Segments
Costco: Members seeking bulk purchases, businesses
Walmart: General consumers, businesses
Similarities: Both serve consumers and businesses. Costco focuses on members seeking bulk purchases. Walmart caters to general consumers and businesses.
Differences: Costco’s emphasis on serving members and businesses with bulk purchase needs. Walmart’s broader customer base, including general consumers, and a wider range of products and services.
Competitive Advantage: Membership-Based (Costco), Broad Consumer Base (Walmart).
Value Proposition
Costco: Savings through membership, limited product selection
Walmart: Everyday low prices, wide product variety
Similarities: Both emphasize cost savings. Costco offers savings through membership and limits product selection to save costs. Walmart focuses on everyday low prices and offers a wide variety of products.
Differences: Costco’s value proposition of savings through membership and a curated selection of products. Walmart’s proposition of everyday low prices and extensive product variety.
Competitive Advantage: Savings through Membership (Costco), Wide Product Variety (Walmart).
Channels
Costco: Warehouse stores
Walmart: Physical stores, e-commerce
Similarities: Both operate physical stores. Costco’s primary channel is warehouse stores. Walmart utilizes physical stores and e-commerce for sales and distribution.
Differences: Costco’s exclusive reliance on warehouse stores. Walmart’s use of both physical stores and an extensive e-commerce presence for sales and distribution.
Competitive Advantage: Warehouse Stores (Costco), Omnichannel Presence (Walmart).
Customer Relationships
Costco: Member-focused, limited advertising
Walmart: Broad consumer base, advertising
Similarities: Both maintain customer relationships. Costco focuses on member satisfaction with limited advertising. Walmart caters to a broad consumer base and invests in advertising and marketing.
Differences: Costco’s member-centric approach with a focus on member satisfaction and less reliance on advertising. Walmart’s broader consumer focus and substantial investment in advertising and marketing campaigns.
Competitive Advantage: Member-Centric Approach (Costco), Broad Consumer Base (Walmart).
Key Activities
Costco: Inventory management, membership services, limited SKU selection
Walmart: Inventory management, diverse product offerings, e-commerce services
Similarities: Both engage in inventory management. Costco offers membership services and maintains a limited SKU selection. Walmart manages diverse product offerings and provides e-commerce services.
Differences: Costco’s focus on efficient inventory management, membership services, and offering a curated selection of SKUs. Walmart’s diverse product offerings, including a vast SKU selection, and investment in e-commerce services.
Competitive Advantage: Efficient Inventory Management (Costco), Diverse SKU Selection (Walmart).
Key Resources
Costco: Warehouse facilities, membership base
Walmart: Physical stores, extensive supply chain network, e-commerce platform
Similarities: Both rely on physical facilities. Costco’s key resources include warehouse facilities and a membership base. Walmart’s resources encompass physical stores, an extensive supply chain network, and an e-commerce platform.
Differences: Costco’s exclusive reliance on warehouse facilities and a membership base. Walmart’s advantage in the vast network of physical stores, robust supply chain, and a significant e-commerce platform.
Competitive Advantage: Warehouse Facilities (Costco), Extensive Store Network (Walmart).
Key Partnerships
Costco: Suppliers, service providers, credit card companies
Walmart: Suppliers, technology partners, e-commerce platforms
Similarities: Both collaborate with suppliers. Costco partners with service providers and credit card companies. Walmart partners with suppliers, technology providers, and e-commerce platforms.
Differences: Costco’s partnerships with service providers and credit card companies to enhance member benefits. Walmart’s diverse partnerships with technology providers and e-commerce platforms to expand its digital presence and services.
Competitive Advantage: Member Benefits (Costco), Digital Expansion (Walmart).
Revenue Streams
Costco: Membership fees, product sales
Walmart: Product sales, e-commerce revenue
Similarities: Both generate revenue through product sales. Costco derives revenue from membership fees and product sales. Walmart earns revenue primarily from product sales, including e-commerce.
Differences: Costco’s additional revenue stream from membership fees. Walmart’s primary revenue source from product sales, supplemented by e-commerce revenue.
Competitive Advantage: Membership Revenue (Costco), E-commerce Growth (Walmart).
Cost Structure
Costco: Low-cost model, limited advertising
Walmart: Cost-efficient operations, advertising expenses
Similarities: Both maintain cost-efficient operations. Costco follows a low-cost model with limited advertising expenses. Walmart focuses on cost-efficient operations but invests in advertising and marketing.
Differences: Costco’s low-cost model with minimal advertising expenses. Walmart’s cost-efficient operations with a more substantial investment in advertising and marketing campaigns.
Competitive Advantage: Low-Cost Model (Costco), Efficient Operations (Walmart).
Related Visual Stories
Costco had 316,000 employees in 2023, compared to 304,000 employees in 2022, 288,000 in 2021, and 273,000 in 2020.
Costco generated $4.58 billion in membership revenue in 2023, compared to $4.2 billion in membership revenue in 2022, compared to $3.87 billion in 2021 and $3.54 in 2020.
In 2023, Costco generated $64.51 per member, compared to $64 per member in 2022, $63 in 2021, and $61 in 2020.
Walmart generated over $572 billion in revenue in 2022 and over $13.6 billion in net profits in the same year. Compared to over $559 billion in revenue in 2021 and over $13.5 billion in net profits.
Walmart generated over $572 billion in revenues in 2022, compared to over $559 billion in 2021.
Walmart had 230 million global customers in 2022, compared to 240 million customers in 2021 and 265 million customers in 2019.
In 2022, Walmart had 10,500 employees globally, compared to 11,400 employees globally, in 2021.
Walmart had 2.3 million associates globally in 2022, the same number in 2021. While in 2020, Walmart had 2.2 million associates globally.
Walmart Organizational Structure
Read Also: Walmart Business Model, Walmart SWOT Analysis, Walmart Mission Statement, Costco Business Model.
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